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Whole Foods Business Model Paper

1287 Words6 Pages

A business model is described as being the way a company creates, delivers, and keeps value. A business model contains four main areas of venture which include customers, offering, infrastructure, and financial stability. Within these ventures are nine building blocks that describe and assess the business model. The building blocks are vital to an organization’s success and longevity.
The first of the nine building blocks in the business model is customer segments. Whole Foods tends to attract consumers with a higher income that have the money available to spend on higher quality products (“Whole”). The typical Whole Foods customer is a 25 to 39 year old female with around $1,000 in discretionary income per month and works in a professional …show more content…

The first source of value comes from the Whole Foods brand and industry standing. Whole Foods is considered to be one of the most popular grocery chains in the United States and has a reputation among its customers (“Whole”). Along with this is the respect the company has for its consumers. Whole Foods recognizes their consumers’ importance and in return provides its customers with transparency about their products (Pereira). Another source of value comes from the company’s high quality products. Whole Foods ensures that all of its locations are Certified Organic; outside certifiers are used as well in order to follow USDA regulations (Pereira). In addition, value is found in Whole Foods’ determination to sustain the environment. The company ensures sustainability through their use of organic farms, dairies, and farming practices (Pereira). The company is also part of the Marine Stewardship Council, which is a non-profit group committed to sustainable fishing for the future (Pereira). Whole Foods provides many value propositions for its consumers and …show more content…

Whole Foods invests in robust IT and communications infrastructure to support its online sales channel, as well as in-store technologies to streamline operations and enhance the customer experience (“Pereira”). The Company's adherence to National Organic Program standards is also a critical resource that reinforces its commitment to sustainability and responsible sourcing (“Pereira”). Whole Foods has lowered pricing on certain products to remain competitive, a strategy that leverages its purchasing power and distribution network to negotiate favorable pricing and reduce

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